Land Titles

LAND REGISTRATION CONCEPT OF LAND REGISTRATION LAND TITLE – evidence of the owner’s right or extent of interest, by which he can maintain control and as a rule assert right to exclusive possession and enjoyment of property DEED – instrument in writing by which any real estate or interest therein is created, alienated, mortgaged or assigned or by which title to any real estate may be affected in law or equity

1. 2. 3.

Grantor

4. Description of Property

Grantee

5. Signature of grantor

Words of grant

6. Witnesses

TYPES OF ESTATES:

1.

FREEHOLD ESTATE – indicates title of ownership

a. b. c. 2.

Fee simple – absolute title; conferred without limitation, qualification or restriction Fee tail – pass title to grantee & his heirs Life state – held for duration of life of grantee

LESS THAN FREEHOLD ESTATE – a right short of title

a. b. c.

Estate for years – lease for a period agreed upon, lessor retains ownership of land Tenancy from period to period – lease running from month to month or year to year with automatic renewal Tenancy at will – person is permitted to occupy land of another without stipulation as to period

3 STAGES OF DEVELOPMENT OF LEGAL SYSTEM OF TRANSFERRING TITLES:

1. 2. 3.

Production & delivery of deed by grantor to grantee without registration Recording of deed of conveyance to bind 3rd persons Registration of title

REGISTRATION guarantees the title but RECORDING does not; need to examine other docs PURPOSE OF REGISTRATION: 1. Serve as constructive notice 2. Prevent fraudulent claims 3. Protect interest of strangers to transaction MODES OF ACQUIRING LAND TITLES:

1. 2. 3. 4. 5. 6. 7. 8.

Title by public grant – conveyance of public land by government to a private individual Title by acquisitive prescription – open, continuous, exclusive, notorious possession of a property Title by accretion – alluvium Title by reclamation – filling of submerged land by deliberate act and reclaiming title thereto; government Title by voluntary transfer – private grant; voluntary execution of deed of conveyance Title by involuntary alienation – no consent from owner of land; forcible acquisition by state Title by descent or devise – hereditary succession to the estate of deceased owner Title by emancipation patent or grant – for purpose of ameliorating sad plight of tenant-farmers; not transferable except by hereditary succession

Land registration is a proceeding in rem. (citing Greg Alba vs. De la Cruz, 17 Phil. 49). Being in rem, such proceeding requires constructive seizure of the land as against al persons, including the State, who have rights to or interests in the property. An in rem proceeding is validated essentially through publication. This being so, the process must strictly be complied with. Otherwise, persons who may be interested or whose rights may be adversely affected would be barred from contesting an application which they had no knowledge of. As has been ruled, a party as an owner seeking the inscription of realty in the land registration court must have proved by satisfactory and conclusive evidence not only his ownership hereof but the identity of the sale, for he is in the same situation as one who institutes an action for

recovery of realty. (Citing Archbishop of Manila vs. Arnedo, 30 Phil. 593). He must prove his title against the whole world. This task, which rests upon the applicant, can best be achieved when all persons concerned, any, “the whole world, “ who have rights to or interests in the subject property are notified and effectively invited to come to court and show cause why the application should not be granted. The elementary norms of due process require that before the claimed property is taken from concerned parties and registered in the name of the applicant, said parties must be given notice and opportunity to oppose. (Dir. of Lands vs. CA, et al., G.R. No. 102858, July 28, 1997, 85 SCAD 92; Cacho vs. CA, et al., G.R. No. 123361, March 3, 1997, 85 SCAD 211).

BAR:May the owner of a building constructed on an unregistered land belonging to another apply for the registration of such building under the Land Registration Act ad P.D. No. 1529? What should be do t protect his rights in case the owner of the land applied for registration thereof? Give your reasons. (1989Bar) HELD: No, because P.D. No. 1529 applies only to registration of land. The registration of the land may include the building, but the building cannot be registered independently of the land. To protect his interest, the owner of the land should file an opposition or answer to the application for registration and ask that his right over the building be annotated on the title.

BAR:A is the owner of a parcel of unregistered land. He sold it to B in 1990. The land was not transferred in B’s name. The document was not also registered. In 1991, he was sued by C for a sum of money. The court rendered judgment holding a liable, hence, the land was levied upon and sold by the sheriff to C who was the highest bidder. Between B and C, who is the owner of the property? Why? HELD: B is the owner of the land, even if the sale to C was registered. This is so because at the time of the sale by the sheriff to C, A was no longer the owner as he had already sold it to B. In Radiowealth Finance Co. vs. Palileo, G.R. No. 83432, May 20, 1991, it was held that under Act No. 3344, registration of instrument s affecting unregistered land is without prejudice to a third party with a better right. The mere registration of a sale in one’s own name does not give him any right over the land if the vendor was not anymore the owner of the land, having previously sold the same to somebody else even if the earlier sale was unrecorded.

TORRENS SYSTEM OF LAND REGISTRATION ADVANTAGES:

1. Abolishes endless fees 2. Eliminates repeated examination of titles 3. Reduces records enormously 4. Instantly reveals ownership 5. Protects against encumbrances not noted on the Torrens certificate 6. Makes fraud almost impossible 7. It assures. 8. Keeps up the system without adding to burden of taxation; system’s beneficiaries pay the fees 9. Eliminates tax titles 10. Gives eternal title as state ensures perpetuity 11. Furnishes state title insurance rather than private title insurance 12. Makes possible the transfer of titles or loans within hours instead days PURPOSE OF TORRENS LAW: quiet title to land – once registered, owner might rest secure

PERSONS BOUND WHEN TITLE NOT REGISTERED:

1.

Grantor

2. 3.

Heirs & devisees Persons with actual notice

PROCEDURE IN LAND REGISTRATION :

1. Survey of land by Bureau of Lands or duly licensed private surveyor 2. Filing of application for registration by applicant 3. Setting of date of initial hearing of application by RTC 4. Clerk of court to transmit to Land Registration Authority (LRA) the application, date of initial hearing & other pertinent docs 5. Publication of notice of filing of application, date & place of hearing – in OG and in newspaper of general circulation 6. Service of notice – contiguous owners, occupants & those who have interest in property 7. Filing of answer or opposition to application 8. Hearing of case by RTC 9. Promulgation of judgment by court 10. Issuance of decree by RTC – decision; Instruct LRA to issue decree of confirmation & registration 11. Entry of decree of registration in Land Titles Administration 12. Sending of copy of decree to Register of Deeds (ROD) 13. Transcription of decree of registration in registration book & issuance of the owner’s duplicate original certificate of title of the applicant by the LRA - upon payment of prescribed fees

(BAR)Subsequently to the original registration of a parcel of land bordering a river, its area was increased by accession. This additional area was not included in the technical description appearing on the Torrens Certificate of the Title having been acquired subsequent to the registration proceedings. May such additional area be acquired by third persons through prescription? Give your reasons. HELD: Yes. Since the law refers to registered lands, the accession mentioned in this question may be acquired by a third person through adverse possession or acquisitive possession. It is no protected by the Torrens system.

(1) Is title to registered land subject to prescription? No, because no title to registered land in derogation to that of the registered owner shall be acquired by prescription or adverse possession. This is due to the fact hat one it is registered under the Torrens system; it operates as a notice t the whole world. Everyone is bound by it. (2) How about the right of the registered owner to recover possession, is it equally imprescritible? Why? Yes. The right to ask for recoveyance from another who is holding it is equally imprescriptible. The reason is that, possession is a mere consequence of ownership. (3) What effect has he equitable principle of laches on the imprescriptibility of Torrens title? While it is true that a title is imprescriptible, yet under certain exceptional circumstances, it may yield to the equitable principle of laches. If there is inaction or utter neglect by the owner, and the intervention of rights by third parties may, for reason of equity, convert the claim of imprescribility into stale demand. (heirs of Batiog Lacamen vs. Heirs of Laruan, L-27058, July 31, 1985).

2 or more claimants: BAR:Between two (2) sets of claimants of real property, those claiming ownership by acquisition prescription, and those asserting ownership on the basis of a deed of sale recorded in the certificate of the vendor as mortgagee and the highest bidder in a foreclose sale, who has a better right? HELD: The latter has a better right, hence, the one who claims to have been in possession for 30 years does not enjoy recognition. Prescription does not run against registered land. Under Sec. 47, P.D. No. 1529, no title to register shall be acquired by prescription or adverse possession. A title, once registered, cannot be defeated even by adverse, open and notorious possession. The certificate of title issued is an absolute and indefeasible evidence of ownership of the property in favor of the person whose name appears therein. It is binding and conclusive upon the whole world. All persons must take notice and no one can plead ignorance of the registration. (Heirs of Leopoldo Vencilao, Jr. vs. CA, et al., G.R. No. 123713, April 1998, 93 SCAD 339).

BAR:Which of the two (2) titles is superior: an earlier title secured administratively or a later title secured through judicial proceedings? Explain. HELD: It is the person holding under the prior certificate who is entitled to the land as against the person who relies on the second certificate. (Dir. of Lands vs. CA, 102 SCRA 370; Pajomayo vs. manipon, 39 SCRA 676; Legarda vs. Saleeby, 31 SCRA 590; INC vs. jon. Judge, L-35273, July 25, 1994, 48 SCAD 303). Under the Property Registration Decree (P.D. No. 1529), upon the expiration of one year from the issuance of the entry of the decree of registration, the said decree and the certificate shall become incontrovertible and indefeasible. (Sec. 32). This provision also applies to titles acquired through homestead patents. (Lahora vs. Dayanghirang, 37 SCRA 346; Lopez vs. Padilla, 45 SCRA 44; Ramirez vs. CA, 30 SCRA 297).

BAR:X,Y,Z are co-owners of a parcel of land. If they want to have the land covered by a title, can X file an application by himself? ANS: All the co-owners must file the application (Section 14 of P.D. No. 1529, otherwise known as the Property Registration Decree). CERTIFICATE OF TITLE TORRENS TITLE – certificate of ownership issued under the Torrens System of registration by the government through road naming & declaring owner in fee simple of property described therein free from all liens except those expressly noted The purposes of the Torrens system are:

1) 2)

To avoid conflicts of title to real estate; To facilitate transactions relating to land. (St. Dominic Corp. vs. IAC, June 30, 1987)

(BAR)What is the nature of a Torrens title issued on the strength of a homestead patent? Why? ANS: As ruled in Heirs of Gregorio Tengco vs. heirs of Jose Alivalas, 168 SCRA 198, the rule is well-settled that an original certificate of title issued on the strength of a homestead patent partakes of the nature of a certificate of title issued in a judicial proceeding, as long as the land disposed of is really part of the disposable land of the public domain and becomes indefeasible and incontrovertible upon the expiration of one year from the date of promulgation of the order of the Director of Lands for the issuance of paten. (Republic vs. heirs of Carle, 105 Phil. 1224 [1959]; Ingaran vs. Ramelo, 107 Phil. 498 [1960]; Lopez vs. Padilla, G.R. No. 27559, May 18, 1972, 45 SCRA 44). A homestead patent, once registered under the Land Registration Act, becomes as indefeasible as a Torrens title. (Pamintuan vs. San Agustin, 43 Phil. 558 [1982]; El Hogar Filipino vs. Olviga, 60 Phil. 17 [1934]; Duran vs. Oliva, 113 Phil 144 [1961]; Pajomayo vs. Manipon, G.R. No. 33676, June 30, 1971, 39 SCRA 676) Indefeasibility of the title, however, may not bar the State, thru the Solicitor General, from filing an action for reservation. The title to the property having become incontrovertible, such may no longer be collaterally attacked. If needed there had been any fraud or

misrepresentation in the title, an action for reversion instituted by the Solicitor General would be the proper remedy. (Sec. 101, CA 141, Dir of lands vs. Jugado, G.R. No. 14702, May 21, 1961, 2 SCRA 32; Lopez vs. Padilla, supra; Rep. vs. CA, et al., G.R. No. 100709, Nov. 14, 1997, 89 SCAD 1) (BAR)may there be a registration of a parcel of land already decreed in favor of another? Explain. ANS: No. In Sps. Mariano and Erlinda Laburado, et al. vs. CA, et al., G.R. No. 101387, March 11, 1998, 92 SCAD 380, it was held that the land registration court has no jurisdiction to order the registration of the land already decreed in the name of another in an earlier land registration case. A second decree for the same land would be null and void (MWSS vs. CA, 215 SCRA 783; Pamintuan vs. Agustin, 43 Phil. 558) since the principle behind original registration is to register a parcel of land only one. (PD No. 1529, Sec. 14; Duran vs. Oliva, 3 SCRA 154). An application for registration of an already titled land constitutes a collateral attack on the existing title. (Cervajal vs. CA, et a., G.R. No. 98328, October 9, 1997, 87 SCAD 828) (BAR)What is the nature of issuance of a decree of registration? Explain. ANS: The issuance of a decree of registrations part of the judicial function of the courts and is not a ministerial act which may be compelled by mandamus. In Valmonte and Jacinto vs. Nable, 85 Phil. 256, it was said that after the rendition of a decision by a registration court, there remain many things to be done before the final decree can be issued. Although the final decree is actually prepared by the Chief of the Land Registration Office, an administrative officer, the issuance of the final decree can hardly be considered a ministerial act for the reason that said officer of the court and so the issuance of a final decree is a judicial function and not an administrative one. (De los Reyes vs. De Villa, 48 Phil. 227) PROCESS:

1.

Within 15 days from finality of order of judgment directing registration of title – court to order LRA to issue decree of registration and certificate of title

2. 3.

Clerk of court will send order of court & copies of judgment

4. 5. 6. 7. 8.

Send to ROD – original & duplicate of title & certificate for entry in his registration book

Administrator to issue decree of registration & original & duplicate of OCT – signed by Administrator, entered & file decree of registration in LRA Enter in record book, dated, signed, numbered & sealed – take effect upon date of entry ROD to send notice to registered owner ready for delivery after payment of fees ROD shall send duplicate & note on each certificate of title to whom it is issued Original copy to be filed in ROD; bound in consecutive order

Legally defined, a certificated of title is the transcript of the decree of registration made by the Register of Deeds. (Phil. National bank vs. Tan Ong Zse, 51 Phil. 317).

ACTION FOR PARTITION, SPLITTING OR CONSOLIDATION OF TITLES:

1. 2.

Splitting or consolidation – ordinary – ROD level, no court involved Subdivision plan – approval of NHA, final approval of LRA, then ROD to issue memorandum that streets not to be disposed except by way of donation to govt. shall be effected without approval of NHA

ANNOTATIONS AT BACK OF CERTIFICATE – need court order, otherwise null & void

(BAR)the tile of a parcel of land was factiously transferred from A to B. then B sold it to C, who now has a title. The owner, A wants to recover it from C contending that B’s title was void. Is the action of A proper? Why? HELD: No, because it is a rule that the rights of innocent purchasers for value should prevail. Even assuming that the sale by B to the C was void, being based on a fictitious transfer from A to B, the general rule that the direct result of a previous void contract cannot be valid, is inapplicable in this case as it will directly contravene the Torrens system of registration. Where innocent third person, relying on the correctness of the certificate of title thus issued, acquire rights over the property, the court cannot disregard such rights and order the cancellation of the certificate. The effect of such outright cancellation will be to impair public confidence in the certificate of title. The sanctity of the Torrens system must be preserved; otherwise, everyone dealing with the property registered under the system will have to inquire in every instance as to whether the title had been regularly issued, contrary to the evident purpose of the law. Every person dealing with the registered land may safely rely on the correctness of the certificate of the title issued therefor and the law will on no way oblige him to go behind the certificate to determine the condition of the property. (Heirs of Benito Gavino, et al., vs. CA. et al., G.R. No. 0154,

June 29, 1998, 95 SCAD 358) VOLUNTARY DEALINGS OPERATIVE ACT – registration by owner; if deed is not registered, it is binding only between parties PROCESS OF REGISTRATION:

1.

File instrument creating or transferring interest and certificate of title with ROD

a. b. c. d. 2. 3.

Owner’s duplicate Payment of fees & documentary stamp tax Evidence of full payment of real estate tax Document of transfer – 1 copy additional for city/provincial assessor

ROD shall make a memorandum on the certificate of title, signed by him Issue TCT

VOLUNTARY DEALINGS: NEED TO PRESENT TITLE TO RECORD THE DEED IN REGISTRY & TO MAKE MEMORANDUM ON TITLE WHILE IN INVOLUNTARY DEALINGS: NO PRESENTATION REQUIRED; ANNOTATION IN ENTRY BOOK IS SUFFICIENT BAR:May the Register of Deeds refuse to register a contract of sale on the ground that it is void? Why? ANS: No, because the duty of the Register of Deeds is merely ministerial and mandatory in character. The main purpose of registration is to give notice to the public, either actually or constructively.

FORMAL REQUISITES OF A DEED

1. 2. 3. 4. 5. 6.



Full name Nationality Place of residence Postal address of grantee or other persons acquiring or claiming interest Civil status Whether or not corporation

1. 2.

ROD to keep an entry book – day book

3. 4. 5. 6.

Fees of 5 pesos per document to be paid within 15 days

Enter in order of reception all deeds & voluntary instruments, write & processes re land -year, month, day, time, minute of reception of instrument; Registered from time of entry Note memorandum & sign & issuance of certificate Documents are numbered & indexed & indorsed with reference to certificate of title– public records Subject to reasonable regulation

Cost borne by vendor

(BAR)Spouses “A” and “B” are registered owners of lot “I” consisting of 20,000 square meters, while spouses “C” and “D” are owners of lot “2”. These lots are separated by a river. For a period of more than 40 years, the river overflowed its banks yearly and the property of the spouses “C” and “D” gradually received deposits of soil from the effects of the current of the river so that an alluvial deposit of 29,000 square meters was added to their lot, 11,000 square meters of which used to be part of lot “1” Spouses “A” and “B” contend that accretion should not extend to registered land because to allow the spouses “C” and “D” to acquire title over the accretion will be in derogation of the indefeasibility of the Torrens Title of spouses “A” and “B.” It this contention correct? Explain. (BAR 1989) HELD: No, the contention of A and B is not correct because the registration under the Torrens Law does not protect the owner against the diminution of his land through gradual changes due to the effects of the current of the river. The accretion will benefit C and D because the acquisition of ownership of the accretion is by operation of law. The owner o the adjacent lot to the river need not even perform a positive act to acquire it because the law itself confers ownership upon him. (Art. 457, NCC). BAR:More than one year had elapsed since the issuance of the final decree of registration when a discovered that his land had been fraudulently registered in the name of his B, his caretaker.What right of action if any, does A have and against whom? Explain. ANS: A can file an action for reconveyance against B or for damages if the property has passed into the hands of an innocent purchaser for value. Such action does not seek to review he decree of registration but is merely for the enforcement of a trust.

BAR:Melchor is the owner of a parcel of land adjoining the back of Padsan River in Dingras, Ilocos Norte. It is titled. The and has a total area of 5,000 square meters. After five (5) years, the land received an accretion of 700 square meters due to the natural current of the river.

a)

Who owns the accretion? Why?

b)

Is he accretion a part of title? Why?

c)

Suppose Mariano enters into possession of the accretion, can he acquire it by prescription? Why?

d)

What is the remedy of Melchor in order that the land may be covered by a title?

ANS: a) Melchor is the owner of the accretion. Under the law, to the owner of the land adjoining the bank of a river belongs the accretion received by such land provided that the following are complied with:

1)

It must be the result of the natural current of the river;

2)

The increase is gradual;

3)

The river must be continuous.

b) The accretion is not a part of the title because the title has a particular description which does not comprise the accretion. c) Yes, Mariano can acquire the accretion by prescription because it is unregistered. His possession, however, must be of a period of 30 years as it is in bad faith. (Jagualing vs. CA, G.R. No. 94283, March 4, 1991). d) Melchor should file an independent application for land registration. Buyer in Good Faith and For Value BAR: Who is a buyer in good faith and for value? ANS: He is one who buys property of another, without notice that some other person has a right to or interest in such property and pays a full and fair price for the same, at the time of such purchaser or before he has notice of the claims or interest of some other person in the property. (De Santos vs. IAC, 157 SCRA 295; Santos vs. CA, et al., G.R. No. 90380, Sept. 13, 1990). Q- What is the meaning of actual fraud? ANS: It is the intentional omission of fact required by law to be stated in the application or willful statement of a claim against truth. It may also constitute specific acts intended to deceive or deprive another of his right, but lack of actual notice of the proceedings does not of itself establish fraud. (Greg Alba vs. De la Cruz, 17 Phil. 49).

Q- A bought a parcel of land covered by TCT No. 0001 from B, but he failed to register the document. C was present when the parties signed the

contract, although he did not sign as a witness. one (1) year later, C bought the same property, registered the deed of sale and got a title. Did c acquire a better right than B? Why? ANS: No, because C was not a buyer in good faith because he had knowledge of a prior existing interest which was unregistered at the time he acquired a right o the same land. His knowledge of that prior unregistered interest has the effect of registration as to him. The Torrens system cannot be used as a shield for the commission of fraud. (Gustilon vs. Maravilla, 48 Phil. 442; Fernandez vs. CA, et al., G.R. No. 83141, sept. 21, 1990). BAR:What is the remedy of the owner of a titled land in case it was registered fraudulently under the name of another? He can file an action for reconveyance within 10 years, as the registrant is merely holding I as a trustee. The Torrens title cannot be a shield for fraud notwithstanding the rule that registration is a constructive notice of title binding upon the whole world. (Pagkatipunan, et al., vs. IAC, et al., G.R. No. 70722, July 3, 1991; Pajarillo vs. IAC, 176 SCRA 340 [1989]).

BAR: If an owner of a titled property cannot recover the same because it has been sold to a buyer in good faith and for value, what would be his remedy? ANS: if an action for reconveyance based on constructive trust cannot reacj an innocent purchaser for value, the remedy of the defrauded party is to bring an action for damages against those who caused the fraud or were instrumental in depriving him of the property. And it is now well settled that such action prescribes within ten (10) years from the issuance of the Torrens title over the property. (Armerol vs. Bagumbaran, 154 SCRA 396, 407; Caro vs. CA, 180 SCRA 401, 407; Walstrom vs. mapa, Jr. 181 SCRA 431, 442; Pino vs. CA, et al., G.R. No. 94114, June 19, 1991). Stolen Title BAR: “A” stole the title of B and then forged the latter’s signature. He was able to transfer the title under his name. in case B discovers such act of A, can he file an action for the recovery of the property? Yes. In the first question, B can recover the property for as long as it is still under a’s name, because the title of a is void.Can A interpose the defense that a file has already been issued under his name? A cannot interpose the defense that a title has already been issued because a title does not provide a shield for the commission of a fraudulent or illegal act. A never acquired a valid title (Coronel vs. IAC, Oct. 1987; Pagkatipunan vs. IAC, et al., G.R.No. 70722, July 13, 1991; Republic vs. register of Deeds of Quezon, G.R. No. 73974, May 31, 1995, 61 SCAD 498; Añonuevo vs. CA, G.R. No. 113739, May 2, 1995, 61 SCAD 30). Suppose A already sold the land to C, a buyer in good faith and for value, who now has a title, can B still recover the land? Why? HELD: No more because of the protection afforded to C, a buyer in good faith and for value by the Torrens system. Since the title of A appeared to be clean, then C had to rely on the face of the title. Even on the assumption that A’s title was void, yet a void title can be the root of a valid title, the moment it passes to the hands of a buyer in good faith and for value. For require him to look beyond the title is to defeat the primary objective of the Torrens system. (Sps. Diño vs. CA, et al., G.R. No. 95921, Sept. 2, 1992; GSIS vs. CA, G.R. No. 56290, January 30, 1995, 58 SCAD 604) There is, however, an exception to the rule that he can rely on the face of the title as when he has actual knowledge of the facts and circumstances that would impel him as a cautious man to make an inquiry (Santos vs. CA, Sept. 13, 1990; Embrado vs. CA, G.R. No. 51457, June 27, 1994, 52 SCAD 414); or if he defects in the title are too glaring to escape the naked eye. (Lorenzana Food Corp. vs. CA, G.R. No. 105027, April 22, 1994, 50 SCAD 83).

Donation Q- Ferdie donated a piece of property belonging to Meldy, Cory, the donee, was able to register the deed of donation and was able to secure a title. Is the title valid? Why? ANS: No, because a donor cannot lawfully convey what does not belong to him. (De Guzman, Jr. vs. CA, 156 SCRA 701). If at all, Cory merely holds the property in trust for the true owner. While land registration is a proceeding in rem and binds the whole world, the simple possession of a certificate of title under the Torrens system does not necessarily make the holder the true owner of the property described therein. Registration does not vest title. It is not mode of acquiring ownership. (See also Avila vs. Tapucar, et al., G.R. No. L-45947, Aug. 27, 1991; Miranda vs. CA, 177 SCRA 303 [1989]; De Guzman, Jr. vs. CA, 156 SCRA 701).

Juridical and Alien Entities: BAR:May a corporation acquire alienable lands of the public domain? ANS: No, because the term, “persons” under P.D. No. 1529 does not include artificial persons. 2006 notes: nothwithstanding prohibition in the Constitution against private corporation holding lands of public domain except by lease not exceeding 1000 hectares, still, a private corporation may institute confirmation proceeding under the Public Land Act sec 48b if at the time of institution ,the land was already private. 2006 notes: A decision in a cadastral proceedings declaring the lad public does not bar a subsequent application for judicial confirmation of the same land (for as long as the public land remains alienable and disposable)

BAR: XYZ Corporation acquired by purchase a parcel of land from A who has been in possession of the same since 1900. The acquisition was made in 1988. Can the corporation file an original application for land registration? ANS: Yes, because the land is no longer a part of the alienable lands of the public domain. The possession by A since 1900 or over 30 years converted the land ipso jure into a private property, hence, divesting the land of its character as alienable land of the public domain. (Dir. of Lands vs. IAC, Dec. 29, 1986; Magistrado vs. Esplana, G.R. No. 54191, May 8, 1990; Dir. of lands vs. IAC, G.R.No. 65663, Oct. 16, 1992; Republic vs. CA, G.R. No. 108998, August 24, 1994, 54 SCAD 612).

BAR:May the Roman Catholic Church hold or own alienable lands of the public domain? Why? ANS: Yes, because being a corporation sole, it is not covered by the prohibition against private corporations or associations from owning or holding such alienable lands of the public domain. (Republic vs. IAC, 168 SCRA 165).

BAR:May an alien acquire private land in the Philippines? Why? Is the rule absolute? Explain. ANS: As a general rule, an alien may not acquire private land in the Philippines. Public policy demands that land in the Philippines should be exclusively owned by Filipinos. The rule cited above is not absolute, because a former natural-born citizen of the Philippines who wishes to come and reside in the Philippines may acquire private land in the Philippines subject to the following conditions:

1) 2) 3) 4)

Urban Land – 5000 square meters; Rural land – 3 hectare; The land must be for residential purposes; He must have decided to stay in the Philippines as a balikbayan. (Sec. 8 art. XII, Constitution; B.P. Blg. 185; Republic vs. IAC, G.R. No. 74170, July 18, 1989; Republic vs. CA, 54 SCAD 612 supra).

Q- Tiok Chua, a Chinese national and permanent resident of the Philippines, purchased a parcel of private land from Bernardo Cruz. Two (2) years after the sale, he became a Filipino. Can the parcel of land be recovered by Bernardo Cruz on the ground that at the time of the sale Tiok Chua was an alien? Why? ANS: No more. While it is true that by reason of public policy, aliens cannot acquire land in the Philippines as the law reserves the ownership of lands to Filipino only, yet the subsequent naturalization of Tiok Chua erased the public policy sought to be enforced. (Yap vs. Grageda, L-31606, March 28, 1983). The rule is so because the land is now in the hands of a qualified person. (Vicente Godinez vs. Fong Pak Luen, L-36731, Jan 27, 1983; Vasquez vs. Li Seng Giap, 96 Phil. 447; Sarsosa Vda. De Barsobia vs. Cuenca, 113 SCRA 547; see also Rep. vs. CA, G.R. No. 108998, Aug. 24, 1994, 54 SCAD 612, where it was held that a Filipino citizen who became a naturalized Canadian can register a parcel of land bought by him while still a Filipino).

BAR:A, a Filipina, is married to B, an American. During their marriage, A purchased with conjugal funds a piece of real property and placed it under the name “A married to B”. Without B’s consent, A sold the land, hence, b wants now to annul the sale because it was done without his consent, contending that he is also an owner. Is the action proper? Why? ANS: No, because B never acquired ownership over the land even if conjugal funds were used in acquiring the same. This is so because as an alien, he is disqualified from acquiring residential land in the Philippines. (Sec. 7, Art. XII, 1987 Constitution; Cheesman vs. IAC, et al., G.R. No. 74833, Jan 21, 1991).

REGISTRATION PROCESS WHO MAY APPLY:

1.

Those in open, continuous, exclusive, notorious possession of patrimonial property of state under bona fide claim of ownership since June 12, 1945 or earlier

2. 3. 4.

Those who acquired ownership of private land by prescription Those who acquired ownership of private lands by right of accretion Those who acquired ownership in any manner provided for by law

LIMITATION TO OWNERSHIP OF LAND BY CORPORATION:

1.

PRIVATE LANDS

a. b. c. 2.

At least 60% Filipino to acquire private land Restricted as to extent reasonably necessary to enable it to carry out purpose which it was created If engaged in agricultural – restricted to 1,024 ha.

PATRIMONIAL PROPERTY OF STATE

a. b. c.

Lease for 25 years renewable Limited to 1,000 ha. Apply to both Filipinos & foreign cos.

FORM & CONTENTS OF APPLICATION

1. 2. 3. 4. 5.

In writing & signed by applicant or person duly authorized Description of land Citizenship Civil status Full names & address of occupants & adjoining owners

WHAT TO ACCOMPANY APPLICATION:

1. 2. 3. 4. 5.

Tracing cloth plan duly approved by the Director of Lands 3 copies of technical descriptions 3 copies of surveyor’s certificate All original muniments of title 4 copies of certificate by city/provincial treasurer of assessed value of land

AMENDMENTS ALLOWED & NOT ALLOWED

1. 2. 3.

Substantial change in boundaries or increase in area - new technical description necessary – need new publication & notice Substitution of name of new owner – file motion with court Decrease the area – file motion in court

MUNIMENT OF TITLE – instruments or written evidence which applicant hold or posses to enable him to substantiate & prove title to his estate

TRANSACTION TOOK PLACE BEFORE ISSUANCE OF DECREE:

1. 2.

Record instrument in ROD in same manner as if no application was made Present instrument to RTC, motion praying that same be considered in relation to the pending application

TRANSACTION TOOK PLACE AFTER ISSUANCE OF DECREE:

1

Register directly with ROD for purpose of canceling such title & issuing a TCT

REGISTRATION FOR UNREGISTERED LANDS

      

System of registration for unregistered land under the Torrens System (ACT 3344) Before: covers voluntary dealings, now includes involuntary dealings Effect if prospective; binds 3rd persons after registration but yields to better rights of 3 rd person prior to registration (limited effect to 3rd parties) Reason: no strict investigation involved Subsequent dealings – also valid if recorded ROD keeps day book & a register; index system is also kept Procedure:

1.

Presentment of instrument dealing in unregistered land

2. 3.

If found in order – registered If found defective – registration is refused writing his reason for refusal

BAR:Where should the application for land registration be filed? ANS: It should be field in the Regional Trial Court where the land is located. However, the Supreme court may delegate to the municipal court the power to decide land registration cases if there are no controversies and where the value of the lot in question does not exceed P20,000.00. In the City of Manila, only Branch 4 of the Regional Trial Court, NCR Manila, has jurisdiction over land registration cases.

BAR:Suppose he land is situated in two (2) provinces, where should he case be filed? ANS: if the boundary has already been determined, and there are now plans or the two (2) provinces, then, file the same in each o the provinces. However, if the land has been declared for taxation purposes in one province, then, file it in the said province provided that the boundary has not yet been determined.

BAR: What are the distinctions between a decision in a land registration from that of a decree of registration? ANS: The distinctions are:

(1) (2) (3) (4) (5)

A decision is rendered by the court; a decree of Registration is issued by the LRC; A decision contains statement of facts; A decision is signed by the judge; a decree is signed by the LRC; A decision becomes final after 30 days; a decree, 1 year after issuance; Grounds for review of a decision are found in Rule 37 or 38 of the rules of Court;

2006 notes: The ground for a review of decree is fraud and t must be filed within one year from issuance.

PUBLICATION, ANSWER & DEFAULT

NOTICE IN CONSPICUOUS PLACE IN LAND & BULLETIN BOARD OF MUNICIPALITY – 14 days before hearing HEARING– within 7 days after publication in OG – not less than 45 not more than 90 days from date of order

BAR: Is newspaper publication of the notice of initial hearing in an original land registration case mandatory or directly? Why? ANS: It is mandatory as shown by the use of the world “shall”. (Sec. 23, P.D. No. 1529). In Repubic vs. Marasigan, 198 SCRA 219, it was held that the law requires notice of the initial hearing by means of: 10 publication, 2) mailing, and 3) posting, all of which must be complied with. If the intention of the law were otherwise, said section would not have stressed in detail the requirements of mailing of notices to all persons named in the petition who include owners of adjoining properties and occupants of the land. Indeed, if mailing of notice is essential, then by parity of reasoning, publication in a newspaper of general publication is likewise imperative since the law included such requirement in its detailed provision. (Dir. of lands vs. CA, et al., G.R. No.102858, July 28, 1997, 85 SCAD 92)

TO WHOM NOTICE MUST BE SENT:

1. 2. 3.

City/municipal mayor & provincial governor Department of Agrarian Reform, Solicitor General & Director of Lands, Director of Fisheries, Director of Mines Adjoining owners & those who have rights or interest thereto

REQUISITES OF OPPOSITION: 1. Set forth objections to the application 2. State interest claimed by oppositor

GENERAL DEFAULT IS WHEN NO PERSON APPEARS AND ANSWERS WITHIN TIME PRESCRIBED WHILE SPECIAL DEFAULT IS WHEN A PARTY APPEARS AT INITIAL HEARING WITHOUT HAVING FILED AN ANSWER AND ASKS COURT FOR TIME TO FILE ANSWER BUT FAILED TO DO SO WITHIN PERIOD ALLOWED

BAR:What are the requirements of the answer/opposition to the land registration? ANS: They are:

1) 2) 3) 4)

It must be in writing It must set forth the objection; It must state the interest of the opposing party; and It must state the remedy desired.

BAR:Can the oppositor pray for affirmative relief that instead of the applicant he be declared the owner of the land? ANS: Yes, because as an oppositor, he can pray that he be declared the owner of the land even if he s not an applicant. He must, however, adduce evidence to prove his interest. (City of Manila vs. Lack, 19 Phil. 324).

HEARING & EVIDENCE WHO CONDUCTS HEARING: 1. RTC 2. Refer to Referee - Commissioner PROCEEDINGS FOR ORDINARY REGISTRATION (LAND REGISTRATION ACT) /PROCEEDING FOR JUDICIAL CONFIRMATION OF IMPERFECT TITLE UNDER THE PUBLIC LAND ACT

2 3 4 5 6 7

There exist a title to be confirmed Land applied for belongs to the state Court may dismiss without prejudice to file new application Dismiss with prejudice Risk to have application denied without losing land Risk involves loss of land

BAR:What are the purpose of publishing the notice of hearing? ANS: they are (1) to confer jurisdiction; and (2) to invite all parties concerned to appear in court to show cause why the prayer of said application shall not be granted. (Sec. 23, P.D. No. 1529)

BAR:An application for land registration was filed by A covering 50 hectares. After the publication of the notice of hearing, A amended the application to include another 20 hectares of land. Is there a need for republication? Why? Suppose the amendment included only 200 square meters, is there a need for republication? Why? ANS: If the amendment included 20 hectares, there is a need for the republication of the notice of hearing because the additional land is substantial. However, if it is only 200 square meters, the amendment is not substantial, hence, there is no need for republication. The area can be considered as encompassed in the phrase “more or less”

BAR: May the land registration court resolve issued other than those pertaining to land registration? ANS: Yes. In Republic vs. Neri, et al., G.R. No. 57475, Sept. 14, 1992, the Supreme Court Said that P.D. No. 1529 has eliminated the distinction between the general jurisdiction vested in the regional trial court and the limited jurisdiction formerly conferred upon it when acting merely as a cadastral court. Thus, the court may resolve issues other than those strictly pertaining to land registration in cases (1) where the parties mutually agreed or have acquiesced in submitting controversial issues for determination; (2) where they have been given full opportunity to present their evidence; and (3) where the court has considered the evidence already of record and is convinced that the same is sufficient for rendering a decision upon such controversial issues. (Se Vda. De Arceo vs CA, 185 SCRA 489 [1990]). To avoid multiplicity of suits, the Court can properly determine the nature of a document in the land registration proceedings. (Ignacio vs. CA, et al., G.R. No. 98920, July 14, 1995, 62 SCAD 731).

JUDGMENT & DECREE

DECREE – issued by LRA containing technical description of land; issued after finality of judgment

1. 2.

Decrees dismissing application Decrees of confirmation and registration

   3. 4.

Final 1 year after decree, unless there is an innocent purchaser for value Subject only to appeal Once final, cannot be subject to attack and is deemed conclusive against the world

Put end to litigation Purpose of Torrens system is protected



Amendment after 1 year is allowed - creation or extinguishment of new rights; inclusion of new owners not allowed

2006 notes:the effects of the entry of the decree of registration is that it binds the land and quiets title thereto. JUDGMENT– decision of court constituting its opinion after taking into consideration the evidence submitted

WRIT OF POSSESSION – order to sheriff to deliver the land to the successful party litigant; no prescription

1. 2.

Against loser Against anyone unlawfully & adversely occupying

WHEN WRIT MAY NOT ISSUE: when party entered into property after issuance of final decree, is not an oppositor in registration proceeding, and is in possession of land for at least 10 years MEANS TO RECOVER POSSESSION: 1. Forcible entry

2. Unlawful detainer 3. Accion publiciana 4. Accion reindivicatoria

RES JUDICATA:

1. 2. 3. 4.

Former judgment must be final Rendered by court having jurisdiction over subject matter & parties Judgment on merits Identity of parties, subject matter and causes of action

BAR:If an application for land registration is denied can the applicant refile it? Why? ANS: Yes, because the dismissal is not res judicata, except if the dismissal is with prejudice. The denial of the application for registration means that he has not furnished that kind of proof showing an absolute title in fee simple which is required under the law. (Hermanos vs. CA, G.R. No. 54472-77, Sept. 28, 1989). If his evidence can now show absolute ownership, he can refile the application.

REMEDIES AVAILABLE TO AGGRIEVED PARTY IN REGISTRATION PROCEEDINGS:

1.

MOTION FOR NEW TRIAL - must be brought within 15 days from notice of judgment

a. b. c.

Fraud, accident, mistake, excusable negligence which ordinary prudence could not have guarded Newly discovered evidence which could not be discovered & produced at trial Evidence insufficient to justify decision, decision is against the law

2.

APPEAL – must be brought 15 days from notice of judgment

3.

REVIEW OF DECREE OF REGISTRATION –

BAR:What are the requirements/elements for the remedy of a petition for review of the decree of registration? ANS: They are:

(a)

The petition must be filed by a person claiming dominical or other real rights to the land registered in the name of the respondent;

(b)

The registration of the land in the name of the respondent was procured by means of actual (not just constructive) fraud, which must be extrinsic. Fraud is actual if the registration was made through deceit or any other intentional act of downright dishonesty to enrich oneself at the expense of another. It is extrinsic when it is something that was not raised, litigated and passed upon in the main proceedings;

(c) (d)

The petition must be filed within one (1) year from the date of the issuance of the decree; and Title to the land has not passed to an innocent purchaser for value. (Libudan vs. Gil, 45 SCRA 17 [1972]; Reblico vs. Arrelana, 30 SCRA 511 [1969]; RP vs. CA, G.R. No. 40402, March 16, 1987).

4.

RELIEF FROM JUDGMENT – 60 days – 6 months after entry of order; available to party to case, FAME; after judgment; person deprived of right is party to case

5.

RECONVEYANCE – action in personam; available so long as property not yet passed to innocent purchaser for value; bad faith or with notice of defect

6.

RECOVERY FOR DAMAGES

a. b. c. d.

Person is wrongfully deprived of his land by registration in name of another – actual or constructive fraud No negligence on his part Barred/ precluded from bringing an action Action for compensation has not prescribed

BAR:Can the decree be reopened? On what ground? ANS: Yes, on the ground of actual fraud, provided that it must be done within one (1) year from the issuance of the decree of registration. After one (1) year, it becomes indefeasible and imprescriptible.Even before the lapse of one (1) year, if the land has already been sold to an innocent purchaser for value, the decree can no longer be reopened. POST REGISTRATION PETITIONS/MOTIONS

1.

LOST DUPLICATE CERTIFICATE

    2.

Sworn statement that certificate is lost to be filed by person in interest with ROD Petition to court for issuance of new title After notice and hearing – court to order issuance of new title with memorandum that it is issued in place of lost certificate (duplicate) If false statement: complex crime of estafa thru falsification of public document

ADVERSE CLAIM IN REGISTERED LAND

          

Whoever claims a better right or interest in a land adverse to the registered owner shall make written statement alleging his right, how and when acquired with description of land Statement to be signed and sworn to Entitled to registration as adverse claim – noted on certificate of title If there is petition – speedy hearing, determine validity of adverse claim May be cancelled without court order; effective only for 30 days After cancellation, no adverse claim on same ground may be registered by same claimant:Adverse to registered owner Arises after original registration Cannot be registered under the land registration act To be made on original certificate, to the duplicate is not necessary because no access to latter Contracts of lease, contract to sell but prescription & money claims not allowed Purpose: measure designed to protect the interest of a person over a property where registration is not provided for by the land registration act; serve as notice and warning to persons subsequently dealing on said land Different with lis pendens: permanent; can only be removed after hearing is done but adverse claim is only for 30 days: lis pendens – notice that property is in litigation; adverse claim; somebody is claiming better right Recent ruling: adverse claim can only be removed upon court order

BAR:May a Torrens title be collaterally attacked? Why? ANS: No. the TCT or OCT cannot be questioned in an ordinary civil action for recovery of possession filed by the registered owner of said lot. Such a defense partakes of the nature of a collateral attack against a certificate of title brought under the operation of the Torrens system. A collateral attack on the TCT is not allowed on the ground of actual fraud. (Ybañez vs. IAC, g.r. No. 68291, March 6, 1991; Sec. 48, P.D. No. 1529). A decree of registration and the certificate of title issued pursuant thereto may be attacked on the ground of actual fraud within one year from the date of its entry and such an attack must be direct and not by collateral proceeding. The validity of a certificate of title can be threshed out only in a action expressly filed for the purpose.(Ybañez va. IAC, supra) A Torrens title, as a rule, is irrevocable and indefeasible and the duty of the court is to see to it that this title is maintained and respected unless challenged in a direct proceeding. (Co. vs. VA, G.R. No. 93687, May 6, 1991).

3.

PETITION SEEKING SURRENDER OF DUPLICATE TITLE

 

4.

In voluntary and involuntary conveyances – when duplicate cannot be produced, petition in court may be filed to compel surrender of certificate of title duplicate to ROD After hearing, may order issuance of new certificate and annul the old certificate; new certificate shall contain annotation re annulment of old certificate

AMENDMENT AND ALTERATION OF CERTIFICATE OF TITLE

  

A certificate of title cannot be altered, amended except in direct proceeding in court; summary proceeding Entries in registration books not allowed to be altered except by order of court Grounds:

1. 2. 3. 4. 5. 6. 7. 

New interest not appearing on the instrument have been created Interest have terminated or ceased Omission or error was made in entering certificate Name of person on certificate has been changed Registered owner has married Marriage has terminated Corporation which owner registered land has dissolved and has not conveyed the property within 3 years after its dissolution

What corrections are permitted in title (which does not include lands included in original; technical description as long as original decree of registration will not be reopened and rights or interest of persons not impaired; old survey was incorrect; substitution of name of registered owner)

2. 3. 4.

Alterations which do not impair rights and Alterations which impair rights – with consent of all parties Alterations to correct obvious mistakes

BAR:May the owner of a building constructed on the land subject of registration oppose the registration of the land? Why? ANS: No, but he can appear and manifest his ownership of the improvement, otherwise, the land, together with the improvement, shall be registered because accessory follows the principal. BAR:Suppose A applied for the registration of a parcel of land which was granted, and after the decree of registration was issued, B and C entered into the premises, can the court issue a writ of possession against B and C? Why? If not, what is A’s remedy? Why? ANS: A writ of possession cannot be issued against persons who occupied the land after the issuance of a decree of registration. This is because they were not parties to the case. No one is allowed to take the law into his own hands. The remedy is to resort to the courts of justice and institute a separate action for ejectment. Only after the judgment can the prevailing party secure a writ of possession. (Bemos vs. Hon. Nuevo, L58438, June 31, 1984) 5.

RECONSTITUTION OF ORIGINAL CERTIFICATE OF TITLE

      

As consequence of war – records have been destroyed When reconstituted – have same validity as old title Can only be done judicially by filing a petition for reconstitution with RTC To be published in OG for 2 consecutive issues and on main entrance of municipality at least 30 days before hearing In rem proceedings Court to order reconstitution if it deemed fit; issue order to ROD Lack of essential data fatal

BAR: What is the effect if a title is reconstituted but in fact it is not lost? Explain. ANS: In strait times, Inc., vs. CA, et al., G.R. No. 126673, August 28, 1998, it was said that if a certificate of title has not been lost, but it is in fact in the possession of another person, then the reconstituted title is void and the court that rendered the decision had no jurisdiction. (Serra vs. VA, 195 SCRA 482; Demetriou vs. CA, 56 SCAD 589, 238 SCRA 158; New Durawood Co., Inc. vs. CA, 68 SCAD 473, 253 SCRA 740)

The reconstitution of a title is simply he reissuance of a new duplicate certificate of title allegedly lost or destroyed in its original form and condition. (Rivera vs. CA, 61 SCAD 212, 244 SCRA 218). It does not pass upon the ownership of the land covered by the lost or destroyed title. Possession of a lost certificate is no necessarily equivalent to ownership of the land covered by it. The certificate of tile, by itself, does not vest ownership, it is merely an evidence of title over a SCRA 335; Republic vs. CA, 71 SCAD 665, 258 SCRA 712). 6.

TRANSACTION EVIDENCED BY LOST DOCUMENT – HOW REGISTERED

 

ROD forbidden to effect registration of lost or destroyed documents Steps by interested parties:

1. 2.

Procure authenticated copy of lost or destroyed instrument Secure an order from court

FEES, OFFENSES, PENALTIES

 

In connection with original and subsequent registration of lands – payable to Clerk of court, ROD, sheriff

Full payment of fees prerequisite to registration: at least the entry fee of 5.00, rest of the fees due payable within next 15 days OFFENSES:

1. 2. 3. 4.

Larceny Perjury – false statement under oath Fraudulent procurement of certificate: fine of not more than 10,000 or imprisonment of 5 years or both in discretion of court Forgery: fine of not more than 10,000 or imprisonment of 10 years or both in discretion of court

a. b. c. d. 5.

Forging of seal in ROD, name, signature or handwriting of any officer of court of ROD Fraudulent stamping or assistance in stamping Forging of handwriting, signature of persons authorized to sign Use of any document which an impression of the seal of the ROD is forged

Fraudulent sale: sale of mortgaged property under the misrepresentation that it is not encumbered; deceitful disposition of property as free from encumbrance: imprisonment of 3 years or fine not exceeding 2,00 or both at discretion of court

ASSURANCE FUND State creates a fund for the compensation of persons injured by divesting/cutting off of rights due to the indefensibility of title; following that act of registration is operative act by which State transfers title; created to relieve innocent persons from harshness of doctrine that certificate of title is conclusive evidence of an indefeasible title to land. Upon entry of certificate in name of owner or TCT, ¼ of 1% shall be paid to ROD based on assessed value of land – as contribution to assurance fund; if no assessment yet, sworn declaration of 2 disinterested persons subject to determination by court. Money shall be under custody of the National treasurer; invest it until principal plus interest aggregates to 500,000, excess shall be paid to the Assurance Fund; annual report of Treasurer to Secretary of Budget WHO IS ENTITLED:

1.

Claimant must be owner, purchaser or encumbrancer in good faith who suffered actual damage by loss of land; in short – he is deprived of his land or interest therein

2. 3. 4.

No negligence attributable to him Claimant is barred from filing action to recover said land Action to recover from assurance fund has not prescribed

LOSS/DAMAGES SHOULD NOT BE DUE TO FOLLOWING REASONS:

1. 2.

Breach of trust Mistake in resurvey resulting in expansion of area in certificate of title

LOSS/DAMAGES SHOULD BE DUE TO THE FOLLOWING REASONS: 1.Omission, mistake, misfeasance of ROD or clerk of court 2.Registration of 3rd persons as owner 3.Mistake, omission, misdescription in certificate of title, duplicate or entry in books 4.Cancellation AGAINST WHOM ACTION IS FILED:

1.

Action due to deprivation of land due to mistake, negligence, omission of ROD, etc – ROD and National Treasurer as defendants; Sol-

Gen must appear

2.

Private persons involved – should also be impleaded

LIABILITY:

1. 2.

Satisfy claims from private persons first When unsatisfied – secondary liable is the National Treasurer who shall pay thru assurance fund; thereafter Government shall be subrogated to rights of plaintiff to go against other parties or securities

MEASURE OF DAMAGES: Based on amount not greater than fair market value of land Amount to be recovered not limited to 500,000 which is maintained as standing fund If fund is not sufficient, National Treasurer is authorized to make up for deficiency from other funds available to Treasury even if not appropriated WHERE AND WHEN TO FILE ACTION AGAINST ASSURANCE FUND:

1. 2. 3.

Any court of competent jurisdiction – RTC in city where property lies or resident of plaintiff Action prescribes in 6 years from time plaintiff actually suffered loss

If plaintiff is minor, insane or imprisoned – has additional 2 years after disability is removed to file action notwithstanding expiration of regular period INVOLUNTARY DEALINGS INVOLUNTARY DEALINGS – transactions affecting land in which cooperation of registered owner is not needed: it may even be against his will

ATTACHMENT

 

A writ issued at the institution or during progress of an action commanding the sheriff to attach the property, rights, credits or effects of the defendant to satisfy demands of the plaintiff Kinds: a. Preliminary b. Garnishment c. Levy on execution

REGISTRATION OF ATTACHMENT/OTHER LIENS

1.

Copy of writ in order to preserve any lien, right or attachment upon registered land may be filed with ROD where land lies, containing number of certificate of title of land to be affected or description of land

2.

ROD to index attachment in names of both plaintiff & defendant or name of person whom property is held or in whose name stands in the records

3.

If duplicate of certificate of title is not presented:

a.

ROD shall within 36 hours send notice to registered owner by mail stating that there has been registration & requesting him to produce duplicate so that memorandum be made

b. c.

If owner neglects or refuses – ROD shall report matter to court

Court after notice shall enter an order to owner to surrender certificate at time & place to be named therein 4. Although notice of attachment is not noted in duplicate, notation in book of entry of ROD produces effect of registration already EFFECT OF REGISTRATION OF ATTACHMENT:

1. 2. 3. 4.

Creates real right Has priority over execution sale But between 2 attachments – one that is earlier in registration is preferred If not registered – actual knowledge is same as registration

DUTY OF REGISTER OF DEEDS



Basically ministerial but may refuse registration in ff circumstances:

1. 2. 3.

Title to land is not in the name of defendant No evidence is submitted to show that he has present or possible future interest in land Unless: heir

PROPERTIES EXEMPT FROM EXECUTION: FAMILY HOME

ATTACHMENT – How continued, reduced or discharged

 

Any method sufficient in law Document to be registered

1. EXECUTION SALE -To enforce a lien of any description on registered land, any execution or affidavit to enforce such lien shall be filed with ROD where land lies -Register in registration book & memorandum upon proper certificate of title as adverse claim or as an encumbrance -To determine preferential rights between 2 liens: priority of registration of attachment 2. TAX SALE -Sale of land for collection of delinquent taxes and penalties due the government -In personam (all persons interested shall be notified so that they are given opportunity to be heard) -Notice to be given to delinquent tax payer at last known address -Publication of notice must also be made in English, Spanish & local dialect & posted in a public & conspicuous place in place wherein property is situated & at main entrance of provincial building -Sale cannot affect rights of other lien holders unless given right to defend their rights: due process must be strictly observed -Tax lien superior to attachment -No need to register tax lien because it is automatically registered once the tax accrues -But sale of registered land to foreclose a tax lien need to be registered PROCEDURE OF REGISTRATION OF TAX SALE:

1. 2. 3. 4.

Officer’s return shall be submitted to ROD together with duplicate title

5.

Before cancellation, notice shall be sent to registered owner: to surrender title & show cause why it shall not be cancelled

Register in registration book Memorandum shall be entered in certificate as an adverse claim or encumbrance After period of redemption has expired & no redemption (2 years from registration of auction sale) cancellation of title & issuance of new one

ACTUAL KNOWLEDGE IS EQUIVALENT TO REGISTRATION OF ADVERSE CLAIM

1.

Make a statement in writing setting forth alleged interest, from whom acquired, how acquired, no. of certificate of land, name of registered owner, description of land in which right/interest is claimed – signed & sworn to

2. 3. 4.

Statement shall be entitled to registration as adverse claim on certificate of title Effective for 30 days from date of registration After 30 days, may be cancelled by filing of verified petition by party in interest

   5.

Any party may petition in court to cancel adverse claim Court to grant speedy hearing If adverse claim is adjudged invalid – may be cancelled

No 2nd adverse claim based on same ground shall be registered by same claimant

TRUST & POWER OF ATTTORNEY TRUST – obligation of a person to whom legal title to property is transferred to hold the property according to confidence reposed in him 2 KINDS:

1. 2.

Expressed – need to be in writing; cannot be proved by parole evidence Implied – exist by operation of law; can be proved by parole evidence

a. b. c. d. e. f. g.

Property is bought but paid by another party Donation is made but donee have no beneficial interest thereon Price of sale of property is loaned & conveyance is made to lender to secure fulfillment of loan Land passes by succession to a person but legal title is put in another’s name 2 persons purchase property but placed only in one’s name Guardian uses funds of ward to buy property Property is acquired thru mistake or fraud

POWER OF ATTORNEY – authority granted to a person to dispose one’s property

TRUST DIFFERENTIATED FROM POWER OF ATTORNEY

1. 2.

Trust has 3 parties while power of attorney has 2 parties Trust is for benefit of 3rd party while power of attorney is for benefit of principal

REGISTRATION OF TRUST

1.

Sworn statement claiming interest by reason of an implied trust with description of land & reference to number of certificate shall be registered in ROD

2.

Provided not prohibited to do so by instrument creating the trust

APPOINTMENT OF TRUSTEE BY COURT

 

Certified copy of decree shall be presented to ROD & surrender duplicate certificate Cancel duplicate & new certificate shall be entered by ROD

ACTION FOR RECONVEYANCE BASED ON IMPLIED TRUST

 

Prescribes in 10 years If acknowledged in written form – becomes express trust – prescribes upon repudiation

REGISTRATION LIS PENDENS PURPOSE: keep subject matter within the power of the court until the entry of final judgment --- therefore creates merely a contingency & not a lien EFFECT OF REGISTRATION:

1.

Impossibility of alienating the property in dispute during the pendency of the suit – may be alienated but purchaser is subject to final outcome of pending suit

2.

ROD duty bound to carry over notice of lis pendens on all new titles to be issued

CANCELLATION OF LIS PENDENS:

1.

Before final judgment – court may order cancellation after showing that notice is only for purpose of molesting an adverse party or it is not necessary to protect rights of party who caused it to be registered

2. 3.

ROD may also cancel by verified petition of party who caused such registration Deemed cancelled when certificate of clerk of court stating manner of disposal of proceeding is registered

NOTICE OF LIS PENDENS IS AN INVOLUNTARY TRANSACTION



Sufficient that there is entry in day book

OTHER PARTIES WHO NEED TO REGISTER:

1.

ASSIGNEE IN INVOLUNTARY PROCEEDING FOR INSOLVENCY

  

Duty of the officer serving notice to file copy of notice to ROD where the property of debtor lies Assignee elected or appointed by court shall be entitled to entry of new certificate of registered land upon presentment of copy of assignment with bankrupt’s certificate of title (duplicate) New certificate shall not state that it is entered to him as assignee or trustee in insolvency proceedings

JUDGMENT/ORDER VACATING INSOLVENCY PROCEEDINGS

  2.

Order shall also be registered Surrender title issued in name of assignee & debtor shall be entitled to entry of new certificate

GOVERNMENT IN EMINENT DOMAIN

 

Copy of judgment file in ROD which states description of property, certificate number, interest expropriated, nature of public use Memorandum shall be made or new certificate of title shall be issued

TRANSMISSION BY DESCENT/DEVISE WHEN OWNER OF PROPERTY DIES – testate or intestate, Administrator shall file with ROD registration of property in his name to be vested with ownership as trustee so he can sell, etc, convey, etc Not necessary if already empowered in the will

WHEN JUDICIAL PROCEEDING NOT NECESSARY Heirs may partition estate immediately & no need to be burdened with cost/expenses of an administrator

1. 2.

In absence of debts Heirs are all of legal age

PARTITION/SETTLEMENT OF ESTATE

1. JUDICIAL After entry of final judgment of partition, copy certified by clerk of court to be filed with ROD Each owner to give separate certificate of title (duplicate) If ordered to be sold, purchaser shall be entitled to a certificate of title entered in his name upon presentment of order confirming sale 2.

EXTRAJUDICIAL

a. b. c.

Decedent died intestate No debts

Heirs are all of legal age, or minors represented by guardian -Heirs to execute public instrument to be filed with ROD -If disagree with each other, file in court ordinary action for partition -If there is only 1 heir, may adjudicate to himself entire estate via affidavit to be filed with ROD

-If there are movables involved, bond to be filed equivalent to value of property as certified under oath by parties conditioned upon payment if any just claim which may be filed by creditor within 2 years after distribution -Publication in newspaper of general circulation for 3 weeks; not binding to those without notice -Final after 2 years

ORAL PARTITION, WHEN DEEMED VALID -In provinces when person dies leaving property not covered by Torrens system – to avoid legal expenses, heirs make a list of property, pay off debts & assign to each -Statute of frauds – do not operate because it is not a conveyance but a separation of property and designation of part which belongs to them WILLS AND LETTERS OF ADMINISTRATION Executor required to file with ROD a certified copy of his letters of administration or the will if there is a will in order that ROD may register upon certificate a memorandum with reference to file no & date of filing

COURT AUTHORITY NEEDED IN ORDER TO SELL

1. 2.

May be dispensed with if will empowers him sell Without authority first secured, heir may sell subject to result of pending administration

LEASE LEASE - one of the parties deliver possession of property to another who is obliged to pay rent for use of such property

REGISTRATION OF LEASE

1. 2. 3.

File with ROD the instrument creating lease together with Owner’s Duplicate of certificate of title ROD to register by way of memorandum upon certificate of title No new certificate shall be issued

WHEN THERE IS PROHIBITION IN MORTGAGED PROPERTY AS REGARDS SUBSEQUENT CONVEYANCES, ETC.: Leasehold cannot be registered in the title thereof

EFFECT OF REGISTRATION:

1. 2.

Creates a real right but without prejudice to rights of 3rd persons If not registered – valid as between parties but not to 3rd persons without notice

REGISTRATION – lessor not required to initiate; lessee shall initiate ALIENS:

1. 2.

May be granted temporary rights for residential purposes Limit: 25 years, renewable for another 25 years

WHO ELSE MAY REGISTER: Builder in Good Faith

REAL AND CHATTEL MORTGAGE

REAL ESTATE MORTGAGE – real property/real rights secures fulfillment of an obligation KINDS:

1. 2. 3. 4.

Conventional – agreed upon by parties Legal – created by operation of law Judicial – results from a judgment Equitable – pacto de retro in form but mortgage in essence

ESSENTIAL REQUISITES:

1. 2. 3.

Constituted to secure fulfillment of principal obligation Mortgagor be absolute owner of thing mortgaged Person constituting mortgage has free disposal of property

SPECIAL CHARACTERISTICS:

1. 2. 3. 4. 5. 6.

Subject matter is realty Real right – attaches to property wherever it is & whoever holds it Accessory – presupposes existence of valid principal obligation; cannot stand alone Indivisibility – even if debt is divisible; mortgage is not Inseparability – mortgage lien is inseparable from property Retention of possession - mortgagor retains possession

PACTO DE RETRO – EQUITABLE MORTGAGE

1. 2. 3. 4. 5. 6.

Price of sale with right to repurchase is usually inadequate Vendor remains in possession as lessee or otherwise Upon or after expiration of right to repurchase, another instrument extending period /granting new period is executed Purchaser retains a part of the purchase price Vendor binds himself to pay taxes on thing sold Real intention of parties is that transaction shall secure payment of debt or fulfillment of other obligation

EXECUTION & REGISTRATION

1. 2.

3.

Execution of deed in a form sufficient in law (public instrument) Registration with ROD where the land lies & take effect upon registration

a. b. c.

Present deed of mortgage together with owner’s duplicate

d.

ROD to note on deed the date & time of filing & reference to volume & page of registration book in which it was registered

Payment of fees ROD shall enter upon original certificate of title & upon duplicate a memorandum – date, time of filing, signature, file number assigned to deed

No duplicate need be issued

SUBJECT MATTER

    

Real property plus all its accessions unless contrary is stipulated Future property – without legal effect Future improvements – deemed included Fruits & rents of mortgaged property deemed included Continuing credit secured by mortgage valid

FORMS:

1. 2. 3.

Private document – void & inexistent Public instrument but not recorded – binding between parties but not 3rd persons without notice Public document & registered – valid & binding to 3rd parties

MAY MORTGAGE BE REGISTERED WITHOUT DUPLICATE TITLE: Yes



If being withheld by the owner, ROD notifies by mail within 24 hours to registered owner:

1. 2. 

Stating that mortgage has been registered Requesting that owner’s duplicate be produced so that memorandum be made thereof

Owner refuses to comply within reasonable time; ROD to notify court & court may enter order requiring owner to produce certificate

WHEN MORTGAGOR DIES

1. 2. 3.

Abandon security & prosecute his claim by sharing in general distribution of assets of the estate Foreclose mortgage by making executor party defendant Foreclose it in due time

4blue 95 Note: The election of one foreclose the others because multiplicity of actions is abhorred. (Veloso vs. heredia, 33 Phil. 306). PARTIES IN FORECLOSURE SUIT: all persons claiming interest subordinate in right to mortgagee ACTION TO FORECLOSE: Prescribes in 10 years (written contract) VENUE: Per stipulation or in absence thereof, where the property lies

Real Mortgage

Chattel Mortgage

Subject matter is real property Public document only Right of redemption for 1 year Deficiency can be recovered

Subject matter is movable May be in private document provided there is affidavit of good faith No right of redemption Deficiency cannot be recovered

FORECLOSURE

1.

JUDICIAL

a. b.

Mortgagee to petition in court for foreclosure

c. d. e. f. g. h.

Notice & Publication

i. j. k.

After expiry of 1 year redemption period & no redemption, title is consolidated to new owner

Court to render order for debtor to pay sum due within 90 days and if not paid from date of service, property be sold at public auction Public auction: sale to highest bidder Sheriff to issue certificate confirming judicial foreclosure File with ROD final decree of court confirming sale Memo entered in certificate of title If right of redemption exist, certificate of title of mortgagor not to be cancelled but memorandum shall be entered upon the certificate duplicate & original Purchaser to be entitled to new certificate of title & memorandum endorsed on mortgage deed If there is redemption, memorandum to be annotated on certificate of title

BAR: “X” mortgaged his land to the Philippine National Bank (PNB) to secure a promissory note. He defaulted in the payment of the loan so that the land was sold at public auction on January 20, 1960 for P3,500 with the PNB as the highest bidder. On January 20, 1970 “X” offered to redeem the property in the amount of P3,500. He enclosed a postal money order for P1,000 as partial payment and stated that the balance is to be paid in 12 monthly installments. The PNB then discovered that the sheriff’s certificate of sale prepared after the public auction on the land was not registered so that it caused the same to be registered on January 30, 1970. The PNB refused the offer of “X” contending that the offer to redeem was beyond the one-year period provided under Act. No. 3135 and that it was not accompanied by an actual and simultaneous tender of the PNB, “X” filed an action to repurchase on February 20, 1970. Will the action prosper? Give your reasons. (Bar 1989). ANS: Yes, the action will prosper. The redemption period of one (1) year is to be counted from the registration of the sheriff’s certificate of sale. For this reason, the action has not yet prescribed. In fact, tender of the redemption price is not necessary because the filing of the judicial action to enforce the right of redemption within the redemption period is sufficient.

BAR:In a judicial foreclosure of mortgage, is the right of redemption absolute? State the rules. ANS: In a judicial foreclosure of mortgage, the period of redemption depends upon whether the order confirming the sale would state a period of redemption. If it states so, then it shall commence from the date of the confirmation of sale. If it is not stated, then, there shall be no right of redemption. If there is no right of redemption, the title of the mortgagor shall be cancelled immediately and a title shall be issued in the name of the mortgagee.

2.

EXTRA-JUDICIAL

    

Allowed only if stipulation between party authorizes extra-judicial foreclosure Cannot be made legally outside of city where land lies Publication required: post notices for 20 days in 3 public places where property lies & if property is more than P400.00, publication must be for 3 consecutive weeks in news paper of general circulation If foreclosure by rural banks, exempt from publication in newspaper for loans not exceeding 3,000.00 Registration of sale in ROD:

a.

Deed of sale must be supported by certificate of sheriff that said sale was conducted accordingly stating the date, time, place of sale, names of creditor & debtor, description of property, name of highest bidder, selling price

b. c. d.

Present in ROD where land lies

e. f.

New certificate of title issued in favor of vendee

Memorandum on back of certificate is made After expiration of 1 year of redemption period – title is consolidated if no redemption exercised: purchaser to file with ROD the deed of sale & sworn statement attesting to fact that there is no redemption If redeemed – notice of redemption shall be registered & accomplished by way of memorandum on proper certificate of title

RIGHT OF REDEMPTION

 

Payment of purchase price plus 1% per month plus taxes if paid by purchaser To be exercised within 1 year after registration of sale

RIGHT TO DEFICIENCY – allowed

SUBSEQUENT DEALINGS IN MORTGAGED PROPERTY

1.

May be further alienated – stipulation to contrary is void

  2.

No need to secure permission of mortgagee Understood unless prohibited in contract

Pactum commisorium – not allowed

a. b. 4.

If not recorded – valid as to parties but not to 3 rd parties, right not protected against somebody who registers & procures better right

May be further mortgaged – stipulation to contrary is void

  3.

Assignment must also be registered since registration is operative act to affect land

Property is mortgaged There is stipulation for automatic appropriation

Discharge

  

Execute public document canceling or releasing mortgaged in form prescribed by law Present instrument with ROD where land lies together with owner’s duplicate for registration Memorandum of cancellation is annotated on duplicate & original

BAR:X and Y secured a loan from ABC Bank secured by a real estate mortgage over a parcel of land covered by a title. They failed to pay their taxes during the existence of the loan, hence, they city treasurer levied on the land and scheduled it for auction sale. The city treasurer did not send a notice to the bank. At the scheduled auction sale, it was sold to the highest bidder X and Y did not redeem the land after one year so the treasurer executed a final deed o sale. When the bidder (buyer) filed a petition to require X and Y or the bank to surrender the title so that a new title can be issued, the bank learned of the levy and asked the court to annul the tax sale, especially so that it was scandalously sold for only P2,871.00 compared to the mortgage of P290,000.00. Had that bank been notified, it could have easily paid the tax delinquency. Rule on the motion. Explain. ANS: The bank is not correct. The mortgagee is not entitled as a matter of right to a personal service of notice to the delinquent taxpayer, otherwise, it would vitiate the sale. This is because the sale does not operate to cancel or extinguish the pre-existing lien. The new title to be issued in the name of Francisco must have an annotation of said mortgage lien. Neither will the inadequacy of the price vitiate the sale. While in ordinary sales, for reasons of equity, the transaction may be invalidated due to inadequacy of price as to shock one’s conscience, such does not follow when the law gives to the owner the right to redeem, as when a sale is made at public auction upon the theory that the lesser the price, the easier it is for the owner to effect redemption. So while the bank is not entitled to notice as to give it a chance to pay the delinquent taxes, it does not lose its lien on the property as to give it a chance to get back what it has lent, together with interest. (Tiongco vs. Philippine Veterans Bank, 212 SCRA 176). BAR:Give the distinctions between equity of redemption and right of redemption: (1) In equity of redemption, the right is exercised before the auction sale, while in right of redemption, the same is exercised after auction sale; (2) In equity of redemption, a check may be tendered as payment because the owner is exercising a right, while in right of redemption, a check may not be tendered because he is performing an obligation. CHATTEL MORTGAGE CHATTEL MORTGAGE – personal property is registered with ROD to secure performance of an obligation SUBJECT MATTER: movables DEED OF MORTGAGE: requires only description to enable parties & other persons to identify the subject matter REGISTRATION OF CHATTEL MORTGAGE 1.Execution of document 2.Payment of fees 3.ROD enters in DAY BOOK in strict order of their presentation chattel mortgages & other instruments relating thereto (primary process) 4.ROD thereafter enters in a more detailed form the essential contents of the instrument in the Chattel Mortgage Register (complementary process) EFFECT OF REGISTRATION: 1.Creates a lien – attaches to the property whoever holds it; binding on subsequent purchasers 2.Constructive notice SALE OF CHATTEL WITHOUT CONSENT OF MORTGAGEE – void; criminal act EFFECT OF FAILURE TO REGISTER: -Valid between parties but void against 3rd persons -If instead of registration, it is delivered – it shall be a pledge & not chattel mortgage (if no chattel mortgage deed executed) -Actual knowledge is same effect as registration

AFFIDAVIT OF GOOD FAITH: STATEMENT THAT – 1.Mortgage is made to secure obligation specified 2.Valid & just obligation 3.Not entered into for purpose of fraud EFFECT OF ABSENCE OF AFFIDAVIT OF GOOD FAITH: -Vitiates mortgage as against creditors & subsequent encumbrances -Valid as between parties -No need to be in public document

ASSIGNMENT OF MORTGAGE: NO NEED TO BE REGISTERED, PERMISSIVE ONLY & NOT MANDATORY CANCELLATION OF CHATTEL MORTGAGE: MORTGAGEE TO EXECUTE A DISCHARGE OF THE MORTGAGE IN MANNER PROVIDED BY LAW

FORECLOSURE OF MORTGAGE There must first be non-payment & at least 30 days have elapsed since then Alternatives: 1.Judicial 2.Extra-judicial – only if there is stipulation/authority

PROCEDURE IN FORECLOSURE 1.Notice posted for 10 days in at least 2 public places in municipality where property is to be sold designating the time, place and purpose of sale 2.Mortgagor is notified in writing at least 10 days before sale 3.Public auction 4.30 days after sale, officer makes a return & file with ROD where mortgage has been recorded 5.Officer’s return operates as a discharge of the lien created by the mortgage 6.Proceeds to be applied: A.Cost of sale B.Amount of obligation C.Subsequent mortgages D.Balance – mortgagor RECOVERY OF DEFICIENCY: Allowed PUBLIC LAND & HOMESTEAD PUBLIC LANDS – all lands owned by the government

  

Inalienable and alienable Inalienable – public domain: timber and miner lands Alienable/ Disposable - public agricultural land

PUBLIC LAND MAY BE ALIENATED, CONVEYED TO PRIVATE PERSON. PROCEDURE:

1. 2. 3. 4.

Official issuing instrument of conveyance to issue instrument

5. 6.

Fees to be paid by grantee

File instrument with ROD Instrument to be entered in books and owner’s duplicate to be issued Instrument – only contract between Government and private person and does not take effect as conveyance if unregistered, it is registration which is operative act of conveying land; evidence of authority for ROD to register After issuance of certificate of title, land is deemed registered land within the purview of the Torrens system

NATURE OF TITLE TO PUBLIC LANDS CONVEYED: INDEFEASIBLE AND CONCLUSIVE

  

In absence of registration, title to public land is not perfected and therefore not indefeasible In case of 2 titles obtained on same date – one procured through decree of registration is superior than patent issued by director of lands 2 titles procured by one person – one from homestead patent, one from judicial decree & sold to 2 different persons, one who bought it for value and in good faith & one who register first shall have preference

CLASSIFICATION OF LAND OF PUBLIC DOMAIN: Classification is exclusive prerogative of executive & not by judiciary Anyone who applies for confirmation of imperfect title has burden of proof to overcome the presumption that the land sought to be registered forms part of public domain (Regalian doctrine) UNDER THE CONSTITUTION:

1. 2. 3. 4.

Agricultural – only one subject to alienation Forest or timber Mineral lands National park

UNDER THE PUBLIC LAND ACT:

1.

Alienable/disposable

a. b. c. d. 2. 3.

Agricultural Residential, commercial, industrial Educational, charitable Town sites and for public and quasi-public uses

Timber lands - inalienable Mineral lands inalienable

  

If patent or title is issued – void ab initio for lack of jurisdiction Not subject to acquisitive prescription; even if in possession for long time, will not ripen into ownership Except: mineral lands and forest lands acquired before inauguration of Commonwealth in November 15, 1935; vested rights which are protected

FISHPONDS Before: included in definition of agriculture, conversion of agricultural land to fishponds does not change character of land Now: restricted meaning; fishponds have a distinct category; cannot be alienated but may be leased from government. CONFIRMATION OF IMPERFECT TITLE:

1. 2.

Last extension granted by Government was until December 31, 2000 (area not exceed 12 hectares) Right made available to person qualified to acquire alienable and disposable public land thru open, continuous, exclusive, notorious (OCEN) possession under bonafide claim of ownership since June 12, 1945.

a.

Prior to transfer of sovereignty from Spain to US, have applied for purchase but did not receive title, without default on their part provided they have occupied since their application

b. c.

In OCEN possession since June 12, 1945 or earlier Members of cultural minorities in OCEN who has claim of ownership for at least 30 years

2006 notes:In case of foreigner, sufficient that he is already Filipino citizen at the time of his application Corporation who has less 60% Filipino ownership cannot apply confirmation of imperfect title; can only lease

PERSONS COMPETENT TO QUESTION LAND GRANT Persons who obtained title from State or through persons who obtained title from State BAR:A was able to obtain a title over a property of public domain classified as timber land.Is the title valid? Why?No, because the property is not a disposable land of the public domain. Ownership of such land is reserved to the State by the Constitution, hence a certificate of title covering such timber and is void. (Republic vs. CA, G.R. No. L-40402, March 16, 1987, 148 SCRA 488) Suppose he already sold it to B, a buyer in good faith and for value, can the State still recover it? Is the defense of prescription available? Why? Yes, the State can still recover it because the title has always been void, even if it was sold to a buyer in good faith and for value. The action for reversion is imprescriptible. (Republic vs. Animas, 56 SCRA 499). The reason for the rule is that, prescription does not run against the State. Furthermore, if the title is void, an action to declare its inexistence does not prescribe. (Art. 1410, NCC).

BAR: May forest land be owned by a private person? Why? ANS: No, as in fact, it is not subject to registration, and possession thereof, no matter how lengthy, cannot convert it into private property (citing Vaño vs. Gov’t. of P.I., 41 Phil. 161; Rep. vs. CA, 154 SCRA 476; Vallarta vs. IAC, 152 SCRA 679; Dir. of Forest Administration vs. Fernandez, 192 SCRA 121), unless reclassified and considered disposable and alienable. (Sps. Ignacio Palomo, et al., vs. CA, et al.,. G.R. No. 95608, Jan. 21, 1997, 78 SCAD 115). If there were improvements by the one who acquired it, the improvements can be considered part of the reservation since he knew or should have known that the land is inalienable.

DIRECTOR OF LANDS

1 2

Quasi-judicial officer

3

Empowered to alienate and dispose lands

Findings of fact conclusive on higher court with absence of fraud, mistake other than error of judgment; but not with regards to finding of law

MODES OF ALIENATING PUBLIC LANDS:

1. 2. 3.

Homestead settlement Sale Confirmation of imperfect or incomplete title

a. b.

Judicial legalization

Administrative legalization Lease not included since lease does not transfer ownership; free-title grant: free distribution of public lands to encourage people to cultivate; government furnishes the applicant with tolls plus cash allowance to enable him to cultivate HOMESTEAD PATENT WHEN GOVERNMENT GRANT DEEMED ACQUIRED BY OPERATION OF LAW:

1. 2. 3.

Deed of conveyance issued by government patent/grant Registered with ROD – mandatory: operative act to convey & transfer title Actual physical possession, open & continuous

1 2 3

Land ceased to be part of public domain & now ownership vests to the grantee Any further grant by Government on same land is null & void Upon registration, title is indefeasible

TITLE ISSUED PURSUANT TO REGISTRATION OF PATENT

1. 2.

Indefeasible – when registered, deemed incorporated with Torrens system; 1 year after issuance of patent May not be opened one year after entry by LRA; otherwise, confusion, uncertainty & confusion on government system, of distribution of public lands may arise & this must be avoided Except: annullable on ground of fraud, may be reopened even after 1 year because registration does not shield bad faith

1

Court in exercise of equity jurisdiction may direct reconveyance even without ordering cancellation of title

AIM OF HOMESTEAD PATENT:

2 3 4

Benevolent intention of government to distribute disposable agricultural land to destitute citizens for their home and cultivation As a matter of public policy, may be repurchased even if after 5 years provided not for profit Right of repurchase not allowed if sold within family & not for cultivating or living but for speculation purpose

RESTRICTIONS:

1. 2. 3. 4.

Cannot be alienated within 5 years after approval of application for patent Cannot be liable for satisfaction of debt within 5 years after approval of patent application Subject to repurchase of heirs within 5 years after alienation when allowed already No corporation, partnership, association may acquire unless solely for commercial, industrial, educational, religious or charitable purpose or right of way subject to consent of grantee & approval of Secretary of Natural resources

EXCEPTIONS:

1. 2.

Action for partition because it is not a conveyance Alienations or encumbrances made in favor of the government

ERRED HOMESTEADER NOT BARRED BY PARI DELICTO

1 2 3

Pari delicto rule does not apply in void contract Violation of prohibition results in void contract Action to recover does not prescribe

HOMESTEADER

1

If he dies, succeeded by heirs in the application

LEGAL RESTRICTION IN DISPOSITION BY NON-CHRISTIANS (CULTURAL MINORITIES)

2 3 4

Conveyance is valid if able to read and can understand language where deed is written Otherwise, not valid unless approved by Commission on National Integration Safeguard is to protect them against fraud/deceit

BAR:If a parcel of land covered by a homestead patent is sold, what is the period of redemption? ANS: Every conveyance of land acquired under the free patent or homestead provisions, when proper, shall be subject to repurchase by the applicant, his widow, or legal heirs, within a period of five (5) years from the date of the conveyance. (Sucaldito vs. Montejo, G.R. No. 75080, Feb. 6, 1991). The one-year redemption period under the Rules of Court shall be added to the five-year period. The rule is designed for the protection of the owner or awardee. With or without the provision in the deed of absolute sale giving the homesteader the right to repurchase the property, he is entitled to repurchase the provision o law. (sec. 119, The Public Land Act or C.A. No. 141; Berin vs. CA, G.R. No. 7490, Feb. 27, 1991). BAR:A’s father was the original homesteader of a parcel of land covered by a homestead patent on June 3, 1932. On April 27, 1958, A’s father sold the said property to B. On July 15, 1962, A’s father died. On March 15, 1963, A sought to repurchase the property from B who refused. Can A repurchase the property? Yes. The law provides that every conveyance of land acquired under the free patent or homestead provision, when proper, shall be subject to repurchase by the applicant, his widow, or legal heirs, within the period of five (5) years from the date of conveyance. The reason for the law is to preserve and keep in the family of the homesteader that portion of land which the State gratuitously gave him. The right exists in the homesteader and his heir. (Pascua vs. Talens, 89 Phil. 792). BAR:Henry was granted a homestead patent on Jan. 2, 1985. On December 19, 1989, he sold it to Antonio. Is the sale valid? Why? ANS: No, the sale is void, because the law prohibits the sale of the land covered by a homestead patent within five (5) years from the issuance of the patent. Public policy demands that Henry must keep it because it was given to him by the State gratuitously so that he may have something to till and maintain for his family. BAR:Tony was granted a homestead in 1970. In 1990, he sold it to Artemio with the consent of the Director of Lands. Is the sale valid? Yes, because the sale was outside the prohibition period of five (5) years. The public policy that is sought to be prescribed by the law does not exist anymore.

BAR:A parcel of land was classified as pubic land suitable for fishpond development. Does the fact that It was transformed into a fully developed fishpond not mean that it has its character as one declared suitable for fishpond purposes under P.D. No. 704, Sec. 4? HELD: No, It is settled under the Public Land Law that alienable public land held by a possessor, personally or through his predecessor-in-interest, openly, continuously, and exclusively for time. However, only public lands classified as agricultural are alienable and their possession, no matter how long continued, cannot ripen into ownership. (republic vs. CA, et al., G.R. No. 122269, September 30, 1999, 113 SCAD 367). May a forest land be acquired? Why? ANS: No. Unless and until the land classified as forest is released in an official proclamation to that effect, so that it may form part of the disposable agricultural lands of the public domain. The rules on confirmation of imperfect title do not apply. (Almeda vs. CA, G.R. No. 85322, April 30. 1991). Possession of forest lands, however long, cannot ripen into private ownership. A parcel of forest land is within the exclusive jurisdiction of the Bureau of Forestry and beyond the power of the cadastral court to register under the Torrens system. (Dir. of Lands vs. Heirs of Tesalona, G.R. No. 66130, Sept. 8, 1994, 55 SCAD 236). CADASTRAL PROCEEDING COMPARED TO ORDINARY REGISTRATION CADASTRAL

ORDINARY

Government

Private Individual

Private and Public

Private Lands

Party Initiating Subject Matter Government does not Ownership assert ownership Interested only in settlement of titles Government undertakes survey and advances Survey expenses In absence of successful claimant, property goes to government

Ownership is Asserted

On account of owner Applicant has another chance to claim is dismissal is without prejudice

CADASTRAL PROCEEDINGS

PURPOSE:

  

Another means to bring lands under operation of Torrens System Ordinary registration is slow for lack of initiative on part of landowners, innovation was conceived to hasten and accelerate registration Government initiates that all lands within a stated region are up for registration – whether or not owners are interested to settle their titles

NATURE OF PROCEEDINGS:

1 2 3

In rem No defendant & no plaintiff Compulsory

PROCEDURE: 1.

CADASTRAL SURVEY

    

2.

Order Director of Lands to make survey and plan Director gives notice to persons claiming interest in lands & to gen public of day of survey – published in OG and posted in conspicuous place on lands to be surveyed Geodetic engineers commences survey During survey, boundaries are marked by monuments

FILING OF PETITION

  3.

In opinion of Phil president pursuant to requirement of public interest, title of land within a specified area needs to be settled and adjudicated

After survey and plot been made, Director represented by Sol Gen institutes cadastral proceeding by filing petition in court against holders, claimants, possessors, occupants Parcel of lots given their cadastral numbers

PUBLICATION OF NOTICE OF HEARING



Court to order date of hearing

 4.

LRA to notify public by publishing notice 1x in OG and 1x in newspaper of general circulation & copy mailed to person whose address is known & other copies posted in conspicuous place designated by law

FILING OF ANSWER

 

Any person claiming interest in any part of lands subject to petition is required to file answer Answer must give the ff details:

a. b. c. d. e. f. g. h. 5.

Age of claimant Cadastral number of lot claimed Name of barrio or municipality where lot is located Name of owners of adjoining lots If in possession & without grant – no of years in possession If not in possession – state interest claimed If assessed of taxation – assessed value Any encumbrances affecting said lots

HEARING OF CASE

    

In any convenient place where land lies Like an ordinary RTC trial Conflicting claims are determined Lots claimed are awarded to persons entitles – if they could prove title If none could prove title – land is declared public domain

6.

DECISION:Claimants are notified of decision

7.

ISSUANCE OF DECREE AND CERTIFICATE OF TITLE

  

Upon order of court, LRA to enter decree of registration Decree made basis for issuance of OCT Decree is now being directly prepared and issued on regulation forms of such certificate

NATURE OF TITLE COVERED BY 2 ACTS:

  

Title in good faith & for value Errors in plan do not annul decree of registration Cancellation & correction are permitted

LAND ALREADY REGISTERED

   

Jurisdiction is limited only to correction of technical errors Court cannot issue decree on land already decreed Revision of decree allowed when substantial rights are not impaired; what is prohibited is registered land to be registered again in name of another Jurisdiction subsists to all incidental matters

WHEN CAN CADASTRAL PROCEEDINGS MAY BE OPENED

 

10 years Persons claiming title but were unable to file their claim even while in possession are granted right to petition for reopening of proceedings provided such were not alienated, leased or disposed by government

CADASTRAL COURT DOES NOT AWARD DAMAGES, BUT MAY DIRECT SHERIFF TO DELIVER POSSESSION



Provisions of land registration act applicable to cadastral proceedings